EU Probing Subsidies Received by Chinese Threat-Detection System Maker
The European Commission on Dec. 10 opened an investigation on Chinese threat-detection system maker Nuctech for allegedly receiving foreign subsidies "that could distort the EU internal market." A commission "ex officio" inquiry opened in April 2024 with authorities conducting inspections of Nuctech facilities in Poland and the Netherlands, finding a "number of measures granted by the" Chinese government to Nuctech that "may constitute foreign subsidies distorting the internal market," the commission said.
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The potential subsidies include "grants, preferential tax measures, and preferential financing in the form of loans." The commission is concerned these subsidies may have improved Nuctech's competitive position in the EU market through "Nuctech offering, in tender contracts, prices and conditions that cannot be reasonably matched by other market players, for the supply of large" threat-detection systems and the provision of related services.